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warby parker holiday bazaar (Photo credit: amlamster)

A few months ago, I purchased a new pair of Warby Parker glasses and was excited to wear them for the first time. A dinner guest took particular interest in my glasses, commenting on how cool they were. The follow-up question was inevitable: “Where did you get them?” This led us into a thirty minute conversation about Warby Parker and how the glasses have a distinct design, are priced affordably ($95), and have a great website and showroom experience.

This past week I bumped into that person and she thanked me for recommending Warby Parker. She ended up buying a pair for herself and her husband -- and then recommended it to a family friend who, in turn, ordered three pairs. Among her additional Warby Parker converts: two people at work, and a few more friends and family members. All in all, ten pairs were purchased. I was floored. Here was a perfect example of the human referral effect at its finest.

There is nothing stronger than a referral or recommendation. Whether it is for a job, introduction, product, or service, a referral represents a higher probability of success by virtue of familiarity and trust. But what sets Warby Parker apart is three-fold: their unique design, their price point, and their customer service. Combined with the referral effect, these traits are allowing Warby Parker to contend for dominance in the eyewear industry.

Design

It’s easy to see why people like Warby Parker’s stylish design. The eyewear is simple, sleek, and stylistically versatile: a vintage-inspired design that feels timeless. Neil Blumenthal, the Co-Founder and Co-CEO of Warby Parker told me via email that, "We've drawn inspiration from the style of the 40s and 50s and updated it with modern color treatments. Glasses are inherently social and fun. As soon as you throw them on, you want to look in the mirror or show your friends. Ultimately, there's an extension of your personality." This is a key piece of the human referral effect.

Price Point

Warby Parker’s vision is to “create boutique-quality, classically crafted eyewear at a revolutionary price point.” Glasses retail at $95. To put this in perspective, the National Association of Vision Care Plans has stated that the average price of eyeglasses is $263, which includes both frames and lenses. My personal experience in NYC leads me to believe that the average is closer to $400.

So how do they keep the cost so low? A Quora answer by former Warby Parker intern, Andrew Grochal, explains:

Glasses do not cost hundreds of dollars to produce. They just don't. They are a little bit of plastic, metal, and glass -- so why the heck do many pairs of glasses cost more than an iPhone?

The reason they cost hundreds of dollars to buy is mostly because the eyeglass industry is run by the world's most secret monopoly, Luxottica. Luxottica is based in Italy and you've probably never heard of them, but they quietly own Ray-Ban, Oakley, Sunglass Hut, LensCrafter, Pearle Vision, and license almost every high-end fashion brand of glasses out there (Armani, Ralph Lauren, etc) Because they own all parts of the glasses supply chain, they can get away with charging hundreds of dollars for a pair of glasses and people don't know any better but to pay it.

But then Warby Parker came along. What these guys have managed to do is cut a lot of the middlemen out of the process (no distributors or retailers) and are basically just charging a much more fair, reasonable price for the same quality of glasses you would get anywhere else. Their frames are made in the same exact factories and using the same exact materials as the $500 Gucci glasses you buy from LensCrafter, but by creating their own brand and being smart about their costs and how they manage their inventory, Warby Parker can offer these glasses for $95 (and still have free shipping, free returns, and even donate a pair to someone in need).

If the stylish glasses didn’t sway you, the price will.

Customer Service

When I bumped into the dinner guest, one of the biggest things that stood out for her was the customer service. She went on about the fact that the shipping was free, the returns were free, they donate a pair to someone in need, and if you have any issues with the glasses they are eager to help. When my friend received her glasses, they were a little tight at her ears; in turn, she emailed Warby Parker and asked for advice. They told her to either come down to the showroom for help, or go to an optometrist -- and send them the bill. She was so impressed she told everyone about it. This is how customer service should be, à la Zappos.

A few other highlights to show why Warby Parker’s customer service is outstanding:

They have a showroom where they help you try on glasses and make sure the look matches your face structure.

They have a virtual try-on option so that you can try-on your glasses without having to go to the showroom.

You can order five glasses. They’ll ship them to you for free. You have five days to try on the frames. You return the ones you don’t want.

Warby Parker calls your doctor for you. Awesome for those of us who are lazy.

For every pair of purchased glasses, Warby Parker makes a donation to various eyewear non-profits, which enables these organizations to give away a pair of glasses to someone in need.

By focusing on these three aspects of the business, Warby Parker has catapulted onto the scene in the last two years, threatening Luxottica’s hold on the eyewear industry. As their brand spreads rapidly, the referral effect becomes even stronger. Building a global brand isn’t easy, but Warby Parker is off to a great start.